Employee Stock Ownership Plan – ESOP

What is an ESOP?

An ESOP can be a highly effective liquidity and diversification strategy for business owners, while also providing additional employee incentives and sustaining local operations. The ESOP lawyers at Devine Millimet are uniquely qualified to assist owners of companies in assessing the feasibility of ESOPs in light of their personal objectives and the financial capability of their company. We counsel businesses in all industries to understand the benefits, the pros, and the cons of establishing an ESOP. Additional benefits of entering into an ESOP can be significant federal tax advantages to the owners and to the underlying company.

ESOP transactions require extensive understanding of the tax and business considerations, rules, and regulations.  Our experienced Team has guided many companies and their owners throughout New England and across the US with their personalized ESOP investigation, feasibility, and transaction process.

The Devine Millimet Team also has extensive experience representing both individual and institutional ESOP trustees in connection with their fiduciary role in an ESOP’s sale or purchase of company stock and with ongoing decisions. In a time when there is more focused attention by the regulatory agencies that oversee ESOPs, it’s important for ESOP trustees to have access to experienced ESOP legal counsel.

Beyond the flexible nature of the ESOP as an ownership transition strategy, the ESOP serves as an additional retirement benefit plan for employees participating in the ESOP. Our Team can assist companies ensure the ongoing compliance of the ESOP to ensure it remains a qualified retirement plan eligible for tax deferral.

Please call a member of the Devine Millimet ESOP Team today to explore whether an ESOP might be the right ownership transition solution for you!